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Writer's pictureAnnie Markuson

Home Renovations with Weak Returns



Closet Renovation

Are you seeking better organization to increase your home storage capabilities? The average cost of a closet remodel is $6,300 with only about $2,400 or 40% of the cost recovered upon resale. You may be able to save some money on your desired organization system by buying in bulk and getting all of the closets throughout your home outfitted with closet organizers at the same time. Getting organized doesn’t come with a high return on investment, it will likely make your home a more comfortable and functional place for you while you are living there!

In-Ground Pool

A 16’x36’ in-ground pool costs $57,500 on average to install with an average return on resale of only 43%. There is no doubt that a private backyard in-ground pool brings joy to the families who are lucky enough to have them. Add in the cost of electricity, maintenance, repairs, and higher insurance premiums before deciding to move forward with your decision to install an in-ground pool. For your family, the advantages of having a pool may prevail over the cost.

Full Kitchen Remodel

This is the one room that almost all homeowners dream of making over. From custom cabinetry to high end appliances, and one of a kind stone countertops the possibilities endless. Creating the kitchen of your dreams comes at a cost.

In upscale homes full kitchen remodels with high end finishes throughout and commercial grade appliances can cost upwards of $130,000. These remodels typically bring back around 60% at resale. A mid-range home full kitchen remodel could cost your around $66,000 and bring back around 62% at resale.

A kitchen that is outdated, poorly laid out, or not functional is not enjoyable to cook and entertain in plus it can turn off potential buyers. If your kitchen needs an overhaul just go into it knowing you might not financially get back what you put into it and make choices on cabinets, appliances, and finishes that fit your style and your budget.

Upscale Bathroom Remodel

A typical full bathroom requires a minimum of 36 square feet to accommodate the sink/vanity, toilet, and tub. For some this space works, for others it feels cramped, and some want a larger bathroom including all the features an upscale bathroom has to offer. Upscale bathrooms require a minimum of 100 square feet of space and typically include double sinks with custom vanity, free standing soaking tub, walk-in frameless glass shower enclosure with tiled floor and walls, compartmentalized commode with toilet, high end faucets and plumbing fixtures, lighting, and tile choices with in floor radiant heat. $64,743 is the average cost for a remodel of this nature if taking the additional space required from the existing footprint of the house. It would bring back an average of $38,952 at resale resulting in a 60.2% return on investment.

Adding a Master Suite

Homes built prior to 1980 typically lack a master suite which has become commonplace in newer builds. Master suites offer a retreat for homeowners and typically include a large bedroom oftentimes accompanied by a sitting area, his and hers walk in closets, and a private bathroom with double vanity, soaking tub, and walk in shower. Adding onto your mid-range home to create a 24’x16’ master suite space costs around $131,000 and brings a value of around $78,000 equaling a 59.5% return on investment.

Costs of creating a master suite could be a lot less if you had a bedroom and/or bathroom already in your home you wished to repurpose, and/or expand, and renovate. This would allow you to utilize some or all of this available space and avoid a large addition or possibly adding on space to your home entirely. Your return on investment for this type of project will likely only bring slightly higher margins than the complete new addition figures above.

In Summary

Making your house a home that functions for you and your family is important. Many exterior home upgrades tend to pay off while interior highly custom upscale renovations don’t. Creating a home that is comfortable, one you look forward to spending time together in may be the biggest contributing factor, but it’s always good to be well informed when making financial decisions.


For a free home remodel cost vs. value report in your region of the country click here.


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